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BJ Bueno

Red Bull’s Word-of-Mouth Marketing Wings

Red Bull has mastered the art of word-of-mouth marketing, tapping into the fact that 92% of consumers trust recommendations from friends, family, and their peers over traditional marketing methods.

Additionally, 83% of Americans report that they are more inclined to buy a product or service when it’s suggested by someone they trust.

At the heart of Red Bull’s approach are two key strategies:

They are creating buzzworthy, on-brand experiences and leveraging the power of brand ambassadors.

For example, their Wings Team, composed of youthful and adventurous ambassadors, plays a pivotal role in this strategy.

They engage with people in one-on-one interactions and at various events, sharing the Red Bull experience.

Moreover, Red Bull sponsors thrilling, extreme sports events that naturally generate conversation.

From cliff diving spectacles to awe-inspiring feats like Robbie Maddison’s motorcycle backflip over London’s Tower Bridge, these events are not just about the sport but also about creating stories that people love to share.

The annual Flugtag event, where participants build and pilot their human-powered flying machines, is another testament to Red Bull’s commitment to creating unique, shareable experiences.

In essence, Red Bull’s marketing flies high on the wings of engaging experiences that resonate with people, encouraging them to spread the word.

Their strategy is a dynamic blend of adventure and personal connections, showing that the best marketing often happens when people can’t stop talking about your brand.

January 23, 2024 by

Design Thinking in Customer Experience

In the ever-evolving customer experience landscape, businesses increasingly turn towards design thinking to enhance customer interaction. 

This approach prioritizes empathy, creativity, and a deep understanding of customer needs, leading to more tailored and impactful experiences. 

Nordstrom’s Innovative Approach

Nordstrom, a leader in customer service, embraced design thinking in developing their in-store sunglass app. By creating a paper prototype and iteratively refining it based on customer feedback, they developed an app that resonated with their customers and demonstrated the power of direct customer involvement in product development​​.

Starbucks: Crafting Comfort

Starbucks employed design thinking to understand what customers sought in a coffee shop experience. By creating an atmosphere of belonging and relaxation and implementing changes such as the strategic placement of round tables, Starbucks enhanced the comfort of solo customers, showcasing the impact of empathy in design thinking​​.

Nike’s Engagement with the Skateboarding Community

Nike’s foray into the skateboarding market highlights the significance of engaging with the target community. By involving skateboarders in the design process, Nike created products that resonated with this group, demonstrating the importance of understanding and integrating user feedback in product design​​.

Oral B: Reimagining Children’s Toothbrushes

Oral-B’s collaboration with IDEO for children’s toothbrushes is a prime example of observational design thinking. By realizing that children require toothbrushes with fat, squishy handles rather than just smaller versions of adult brushes, they successfully catered to a specific customer need, leading to significant market success​​.

GE Healthcare: Transforming the MRI Experience

GE Healthcare used design thinking to improve the MRI experience for pediatric patients. By reconceptualizing MRI machines as part of a child-friendly adventure, they significantly reduced the need for sedation among young patients, showcasing how empathy and creativity can transform a daunting experience into an engaging one​​.

Microsoft: Inclusive Product Design

Microsoft’s application of design thinking in creating products for people with disabilities exemplifies how focusing on inclusivity can lead to innovations that benefit a broader customer base. This approach underlines the importance of considering diverse user needs in product design​​.

IBM: Cultivating Innovation

IBM’s adoption of design thinking has been pivotal in staying ahead in the fast-paced digital technology sector. By focusing on user-centric innovation, they have transformed their organizational culture and reimagined their customer experience​​.

Netflix: Adapting to Changing Needs

Netflix’s journey from a DVD rental service to a streaming giant and content creator is a testament to its commitment to design thinking. By continuously adapting to customer preferences and needs, Netflix has stayed relevant and competitive in the rapidly changing media landscape​​.

Airbnb: Understanding Hosts and Guests

Airbnb’s global success can be attributed to its application of design thinking in understanding and addressing the needs of both hosts and guests. This approach has been central to their business strategy, enabling them to provide a service that meets the diverse needs of their user base​​.

These success stories offer valuable insights into implementing design thinking in business practices. By focusing on empathy, user engagement, and iterative innovation brands can foster more meaningful and effective customer interactions.

January 21, 2024 by

Are You Using Maslow’s Hierarchy Of Needs For Your Marketing?

In today’s dynamic marketing world, leaders of brands must prioritize understanding and addressing their customers’ psychological needs. 

The trend toward personalized marketing underscores the need to comprehend customer motivations beyond simple observational data. 

A valuable tool in achieving this deeper understanding is Maslow’s hierarchy of needs. 

This model, developed by psychologist Abraham Maslow, categorizes human needs from basic physiological requirements to advanced levels like self-actualization. 

Recent studies suggest that fulfilling these needs is not necessarily linear, contradicting the traditional pyramid structure. 

This revelation allows brand leaders to tailor their strategies to individual needs, effectively addressing various customer motivations.

The relevance of Maslow’s hierarchy is universal, transcending cultural boundaries and providing a versatile framework for brands to develop targeted and effective strategies worldwide.

Incorporating Maslow into Buyer Personas

Crafting a buyer persona involves creating a comprehensive profile of an ideal customer, focusing on their inner motivations and challenges. This approach extends beyond demographic data, exploring the psychological elements driving purchasing decisions. By aligning these buyer persona characteristics with the levels of Maslow’s hierarchy, brands can create more intricate, realistic customer profiles. This alignment aids in the development of more focused and effective marketing strategies.

Maslow and Trigger Events:

The essential aspect of understanding customer behavior is identifying the ‘why now’ behind their motivations. 

Trigger events that activate specific needs within Maslow’s hierarchy can illuminate why customers are drawn to a product or service at a particular time. 

Recognizing these events enables brands to communicate more effectively and timely, positioning themselves as a primary resource early in customer decision-making.

Customizing Marketing Messages for Distinct Needs

Applying Maslow’s hierarchy in marketing strategy development reveals the need for diverse messaging to cater to different needs. 

Strategies targeting basic physiological needs will significantly differ from those for customers seeking self-esteem or self-actualization. 

By aligning their marketing communications with the specific needs of their target audience, as defined by their position in Maslow’s hierarchy, brands can more accurately and effectively reach and resonate with their desired customers.

Utilizing Maslow’s hierarchy with detailed buyer personas offers expansive opportunities for brands to connect with and engage their customers. 

This method enables companies to precisely identify and meet customer needs, making them more adaptable and responsive to evolving market trends and customer preferences. 

Ultimately, integrating Maslow’s hierarchy into the creation of buyer personas can substantially boost the impact and efficacy of a brand’s marketing strategies.

January 18, 2024 by

Costco Bullish on New Store Openings

In the dynamic world of retail, Costco’s latest announcement of opening 31 new locations in 2024, including about 24 in the United States and a significant new warehouse in China, is a bold statement of confidence and growth. 

This move, coming off a strong quarter with a 6.1% increase in sales, reaching $56.7 billion, and a rise in membership fees by over 8%, is a testament to Costco’s deep understanding of its customer base and commitment to expanding its successful business model.

Understanding Customer Needs: The Key to Expansion

Costco’s expansion strategy is not just about increasing its physical footprint; it reflects its ability to consistently understand and meet customer needs. Costco has built a loyal customer base that appreciates its unique shopping experience by focusing intensely on value, variety, and quality. This deep customer connection is the driving force behind the company’s confident expansion.

Leveraging Success to Create New Opportunities

The decision to open new locations, including two relocations and new Business Centers in various places, illustrates how Costco is leveraging its current success to explore new opportunities. For instance, the proposed 241,000-square-foot warehouse in Fresno, California, will be the largest in the company’s fleet, suggesting a strategic move to expand and innovate in store size and offerings.

A Lesson for Business Leaders

For business leaders, Costco’s approach offers valuable insights. The company’s expansion is grounded in a strong understanding of its market and customer needs. This level of insight allows Costco to confidently venture into new markets and locations, knowing that its business model resonates with consumers. It’s a reminder that growth should be driven by customer-centric strategies and a deep understanding of what makes your business appealing to your target audience.

As a business leader, how well do you understand your customers’ needs, and how are you using this understanding to guide your expansion strategies?

January 16, 2024 by

Beyond Paychecks: The Powerful Role of Empathy in Modern Leadership

I’ve been thinking a lot about being an empathetic leader, especially now when it’s more important than ever.

You know, empathy isn’t just about understanding others’ feelings and thoughts;

it’s about being really in tune with your team.

Since the pandemic hit, I’ve noticed how much people’s views on work have changed.

It’s not just about the paycheck anymore;

it’s about finding meaning and connection in our work.

I read in Forbes that empathy is considered the most critical leadership skill, but only a small percentage of leaders are seen as empathetic.

This got me thinking about the gap between what we all need and what we get from our leaders.

For me, becoming more empathetic started with looking inward.

It’s about knowing your motivations, how you react to things, and how you communicate.

Once you’ve got a handle on that, you can start adjusting how you lead to better meet the needs of your team.

Balancing compassion with clear expectations is a delicate art.

Let’s create an environment where everyone feels safe to speak their mind, take risks, and even make mistakes.

It’s not just about being nice;

it’s about getting great results while building a more robust culture.

So, empathetic leadership is about focusing on others, understanding their needs, and responding in a way that shows you genuinely care.

And the result?

A team that’s committed, productive, and creative.

Who wouldn’t want that?

January 14, 2024 by

The Art of Customer Profiling: A Must-Have Skill for Brands

Hey there, business visionaries. 

In today’s world, where consumers are more informed and selective than ever, the challenge for CEOs and CMOs is truly understanding this sophisticated audience. 

Your first crucial step in this mission? 

Accurate and insightful customer profiling.

With the modern digital landscape offering abundant customer data, sophisticated online analytics now enable us to dig deeper into consumer behaviors and preferences than ever before. 

This presents a golden opportunity for brands to engage with their customers and prospects consistently and accurately.

Let’s dive into how mastering customer profiling is now an essential skill for providing tailored and relevant experiences.

The Importance of Customer Profiling

Customer profiling is your roadmap to understanding your customers. It’s about piecing together their stories from various data points – what they like, what they don’t, and what makes them tick. Here’s why it’s critical:

Personalization is Key: In mass marketing, personalization is your secret weapon. Profiling allows you to tailor experiences that resonate personally with each customer.

Informed Decisions: You’re not shooting in the dark with customer profiling. In every strategy, solid data tells every campaign.

Staying Ahead of the Competition: Understanding your customers in-depth gives you a leg up over your competition.

The How-To of Customer Profiling:

Data Collection: Consider gathering ingredients for a perfect recipe – everything from sales data to social media interactions.

Analytics and Segmentation: Segment your customers using analytics to understand their distinct characteristics.

Insight into Action: Use these insights to enhance your marketing strategies, product development, and overall customer experience.

Leveraging Technology:

Embrace the latest in AI and machine learning to uncover deeper patterns and predict future trends. Keep your brand at the forefront of innovation.

Ethics in Profiling:

Remember, with power comes responsibility. 

Always be transparent about gathering and using data and prioritizing customer privacy.

Case Study: Snickers’ “You’re Not You When You’re Hungry”

Before we wrap up, let’s look at a real-world example where customer profiling made a big difference. 

Snickers’ “You’re Not You When You’re Hungry” campaign perfectly illustrates this.

Back in 2008, Snickers was focusing its marketing efforts primarily on a “manly man” persona. 

This approach, however, limited their reach. 

The chocolate bar market is vast, with consumers from all walks of life in checkout lines daily. 

Snickers needed a campaign that had universal appeal.

Their solution?

The “You’re Not You When You’re Hungry” campaign launched in 2010. 

This campaign was based on a universal human truth: hunger affects everyone and can make us act out of character. 

By using this insight, Snickers created a message that resonated with a much broader audience.

The campaign started with a memorable Super Bowl commercial starring Betty White, and it was a massive hit.

It increased Snickers’ sales by 15.9% in its first year and significantly boosted its fame. 

The ad topped the USA Today poll as the number one Super Bowl ad and reignited Betty White’s popularity in pop culture. 

This success demonstrated the power of understanding and tapping into a broader customer psyche.

From then on, Snickers continued to leverage this insight in various creative ways, ensuring the campaign’s longevity and relevance. 

This is a prime example of how understanding your customer’s deeper needs and behaviors can lead to a successful marketing strategy.

As we’ve seen with Snickers, customer profiling is more than just gathering data; it’s about finding those universal truths that resonate with your audience. 

By understanding your customers’ deeper needs and behaviors, you can create campaigns that increase sales and build lasting brand loyalty and recognition.

Remember, the key to successful customer profiling is staying agile, evolving, and playing fair and square with your data.

January 10, 2024 by

Mastering Word-of-Mouth Marketing: 10 Proven Strategies To Use In 2024

In the ever-evolving digital era of 2024, the significance of word-of-mouth marketing has never been more crucial. Amidst the deluge of advertisements and information, this marketing approach is pivotal for brand success, as demonstrated by cult brands like Apple, Disney, and Supreme.

Drawing inspiration from successful cult brands, this guide offers C-level executives a roadmap to harnessing the power of customer-driven marketing to elevate their brand’s stature and influence.

What is Word-of-mouth Marketing?

Word-of-mouth marketing, a highly effective yet often underestimated strategy, stimulates organic conversations to create a positive buzz. 

It’s about creating an exceptional brand experience compelling enough for customers to recommend it to others naturally.

This approach is pivotal, especially for significant investments where trust is paramount. 

The aim is to initiate a ripple effect, where satisfied customers become brand ambassadors, thus continuously attracting new clientele and enhancing revenue.

Strategies for Word-of-Mouth Marketing in 2024

Content Marketing à la Apple: Develop a comprehensive content marketing strategy akin to Apple, offering a mix of informative, entertaining, and relevant content across diverse channels.

Harness Customer Reviews and Ratings: Like Disney, encourage and highlight customer reviews across platforms, using positive feedback as social proof to build credibility.

Engage with Influencers and Industry Leaders: Collaborate with authoritative figures in your niche, mirroring the strategic alliances seen in Supreme’s marketing.

Exceptional Customer Support: Prioritize customer support excellence to transform clients into advocates, like Apple’s customer-focused approach.

Industry Events and Networking: Engage in events and networking, showcasing your expertise and forging valuable relationships, similar to Disney’s industry presence.

Social Proof Utilization: Display testimonials and endorsements, leveraging the social proof concept effectively employed by cult brands.

Gamification of Customer Experience: Introduce gamified experiences for customers to encourage brand sharing and engagement, akin to tactics used by Supreme.

Community Outreach and Social Responsibility: Like Disney, engage in initiatives that resonate with your brand values, enhancing community trust and support.

Exclusive Incentives and Rewards: Offer unique referral incentives, drawing inspiration from the whole and coveted releases by Supreme.

Continuous Monitoring and Analysis: Utilize analytics tools to monitor and refine your strategies, ensuring they align with the evolving market dynamics.

Word-of-mouth marketing offers numerous benefits, including building trust, cost-effectiveness, expanding reach, higher conversion rates, fostering long-term relationships, providing competitive advantages, holding viral potential, and offering valuable customer feedback.

Mastering word-of-mouth marketing is essential for thriving in a competitive market.

January 8, 2024 by

Apple, Harley-Davidson, and Starbucks Lead the Way into 2024

This blog post explores the enduring success stories of three iconic brands – Apple, Harley-Davidson, and Starbucks – and extracts vital lessons for business leaders navigating the dynamic world of brand loyalty and consumer engagement.

Apple: A Paradigm of User-Centric Innovation

Entering 2024, Apple’s brand journey remains a beacon for innovation, design, and simplicity.

Established in 1976, Apple has consistently demonstrated the power of creating products that resonate personally with users. This success is rooted in a design philosophy that prioritizes intuitive usability, as initially envisioned by Steve Jobs. Apple products are not just tools; they are extensions of the lifestyle and identity of their users.

Central to Apple’s dominance is its seamless ecosystem. 

This holistic integration of products and services, including the iPhone, iWatch, iMac, iCloud, and Apple Music, fosters a deeply ingrained brand experience. This ecosystem approach simplifies user experience and creates a lifestyle, making it challenging for customers to switch to alternative brands.

Apple’s innovative retail strategy complements this ecosystem. 

Their stores, designed as experiential hubs, are more than points of purchase; they are immersive spaces for customers to connect with the Apple world. The Genius Bar and Apple’s renowned customer service ensure a continuous and enriching customer journey, enhancing brand loyalty.

The brand’s marketing narrative is masterfully crafted to create a loyal following.

Apple’s product launches, regarded as significant events, generate anticipation and excitement, underpinning their strategy of creating and controlling compelling brand stories.

Harley-Davidson: Crafting a Cultural Phenomenon

Harley-Davidson stands as a testament to the power of lifestyle branding. 

Owning a Harley transcends the product; it signifies belonging to a distinct culture and community. This deep integration of product and lifestyle is central to Harley-Davidson’s appeal, fostering a passionate and loyal customer base.

The Harley-Davidson Homecoming event in 2023 exemplifies how Harley-Davidson builds its cult brand with its blend of music, food, and moto-culture. 

Such events create a unique experience that resonates deeply with enthusiasts, fostering a strong sense of community and belonging. 

By celebrating its heritage and connecting with fans globally, Harley-Davidson reinforces its brand identity and loyalty, critical elements in maintaining a cult brand status. 

This approach turns customers into passionate advocates, crucial for sustaining a cult brand’s allure and legacy.

In 2023, Harley-Davidson made significant strides, marking a year of revival and growth. 

This was a year of renewed positivity and consumer spending as society moved towards normalcy after the challenges of the pandemic. People’s desire to travel and explore again, combined with an increase in disposable income, played a crucial role in boosting the sales of Harley-Davidson motorcycles.

One of the most notable achievements for Harley-Davidson in 2023 was the release of their 120th Anniversary models. 

This lineup consisted of seven limited-edition bikes, commemorating 12 decades of Harley-Davidson’s legacy in motorcycle production. These models symbolized the company’s long-standing tradition and continuous motorcycle industry evolution.

Additionally, Harley-Davidson made significant changes to its product mix. 

They stopped producing the EVO Sportsters, the least expensive models in their lineup, shifting focus to higher-end models. This strategic move aimed to enhance the company’s profitability and brand prestige. In line with this, the company is introducing two new models produced in China, the Harley-Davidson X 350 and X 500, targeting primarily the Asian market, reflecting the company’s global expansion strategy.

Despite facing challenges in the electric motorcycle segment with its LiveWire brand, Harley-Davidson’s overall financial health improved. The company managed to maintain a healthy inventory level in dealerships, overcoming the supply chain and logistical issues that had impacted the industry during the pandemic.

Starbucks: Redefining the Coffee Experience

Starbucks has transformed the act of drinking coffee into a communal experience. 

Their concept of the ‘third place,’ a comfortable space between home and work, has redefined the coffee shop as a community center. This strategic move has cultivated enduring customer loyalty and set Starbucks apart in the crowded coffee market.

In 2023, Starbucks marked several significant achievements, reflecting its commitment to innovation, expansion, and sustainability. 

Introduction of Starbucks® Green Apron Blend: In May 2023, Starbucks launched a new coffee blend created by its retail partners. For every one-pound whole bean bag sold, $5 was designated to the Starbucks Caring Unites Partners Fund, reinforcing Starbucks’ commitment to its partners, especially in times of need.

Expansion into Rome: Starbucks opened its first store in Rome in May 2023, overlooking Piazza Montecitorio. This marked a notable expansion into Italy, a country with a rich coffee culture, in partnership with their Italian licensee partner, Percassi.

Sustainability Initiatives: The company plans to expand its farm capability beyond coffee to include a sustainability learning and innovation lab at Hacienda Alsacia in Costa Rica. This lab aims to serve as a hub for learning and innovation in sustainable solutions for global challenges, emphasizing Starbucks’ commitment to the future of coffee and environmental sustainability.

Product Innovation: In June, Starbucks introduced Frozen Lemonade Starbucks® Refreshers beverages to their permanent menu. This launch expanded their beverage offerings, diversifying the customer experience with new flavors.

Financial Performance: In Q3 FY23, Starbucks repurchased 2.0 million shares of common stock valued at $204.0 million. Additionally, the Board of Directors declared a cash dividend of $0.53 per share, continuing a streak of 53 consecutive quarters of dividend payouts with a compound annual growth rate greater than 20%.

Leadership and Corporate Strategy: The year 2023 saw the appointment of Arthur Valdez as Executive Vice President and Global Supply and Customer Solutions Officer in July. These leadership changes were part of Starbucks’ broader efforts to strengthen its global strategy and operational efficiency.

Innovative Store Concepts: Starbucks opened the Starbucks Reserve® Empire State Building® store in November. Spanning 23,000 square feet and three floors, this store offers unique coffee experiences and services, including hands-on workshops and guided tasting flights.

Engagement with Partners and Community: Starbucks focused on its partners (employees) and community. This included the resumption of the company’s Origin Experience, where partners visit the company’s farm in Costa Rica, and the launch of Starbucks Odyssey^{TM} Beta experience, which utilizes Web3 technology to offer new benefits and experiences.

Partnership Expansion: Starbucks announced the expansion of its partnership with DoorDash, Inc. to provide a new delivery service in various U.S. markets, aiming for nationwide availability by March 2023.

Financial Targets and Share Repurchase Program: Starbucks resumed its share repurchase program in Q1 fiscal 2023, buying back 1.9 million shares valued at $191.4 million. The company also intended to return approximately $20 billion to shareholders by the end of fiscal 2025 through dividends and share repurchases.

As we delve into 2024, the brands that will likely capture the market’s attention will be those aligning with contemporary values such as sustainability, inclusivity, and digital innovation. 

These values resonate with today’s consumers, who seek brands that provide superior products and services that align with their beliefs and lifestyles.

These brands exemplify the importance of creating an experience, a community, and an identity that customers aspire to join. 

In 2024 and beyond, successful brands will be those that can weave these elements into their branding strategies, resonating deeply with evolving consumer preferences.

January 3, 2024 by

Gain Insight Into Employees With Seven Questions:

What motivates you at work?

What do you need from us to do your best work?

How can we invest in your future here?

What skills would you like to develop or improve?

What is the one area where the company could improve?

What part of your job would you eliminate?

What aspects of our company culture do you value the most?

December 27, 2023 by

Three Challenges CEOs Must Meet Going into the New Year

In 2023, CEOs faced unprecedented challenges, navigating a complex landscape marked by global unrest, economic volatility, and technological disruption. 

With high CEO turnover rates, it’s clear that more than traditional leadership models is required. 

To thrive in 2024 and beyond, CEOs must embrace three fundamental principles:

Emphasize a Clear Purpose: A compelling vision is essential. Leaders must articulate a “north star” that aligns the entire organization. Although purpose-driven strategies are challenging in the short term, they yield long-term benefits, such as superior customer service. Authenticity in this pursuit builds trust and loyalty among employees and customers.

Build a Strong Executive Team: Success hinges on a cohesive, high-performing senior leadership team. Diversity and inclusivity in team composition are critical. CEOs must ensure that each member possesses the necessary skills and shares the organization’s vision and values. This approach enhances team dynamics and drives better results.

Drive Organizational Transformation: In an era of constant change, CEOs must foster a culture that embraces innovation and continuous improvement. This involves creating an environment where challenges to the status quo are welcomed, and transformation is seen as an ongoing journey, not a destination.

As you aim to lead your organization into a successful future, consider the importance of a clear purpose, a strong executive team, and a culture of transformation. 

We understand the nuances of building a brand that resonates deeply with its audience. 

We offer strategic insights, practical tools, and a proven track record of transforming companies into cult brands.

December 26, 2023 by